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MBA leader Stevens delivers a call to action

Mortgage
Bankers Association (MBA) President David Stevens called for a “strong, steady
and unified voice” to push for the reforms that matter to loan originators.

In
a kickoff speech Monday at the MBA’s national convention in Denver, Stevens
said the MBA — the nation’s largest mortgage trade group — was uniquely
positioned to influence the debate on Capitol Hill over tax reform, regulatory
changes and housing-finance reform.

Stevens
also called out smaller banking trade groups that have broken with MBA over
reform proposals for the government-sponsored enterprises (GSEs) Fannie Mae and
Freddie Mac, and on other issues

“Size,
in this case, matters,” Stevens said. “Small, independent, little trade
organizations may talk a lot, they may yell a lot, but they don’t get access.
You get access when you are really strong and respected.”

Stevens
specifically highlighted the need for Congress to embark on comprehensive
finance reform, saying Congress needs to “lock in” internal reforms that have
been made to Fannie Mae and Freddie Mac while under the government’s control.
Earlier this year, MBA issued a finance-reform blueprint, which calls for
preserving Fannie and Freddie, but allowing other chartered enterprises to
purchase and securitize mortgages.

In the opening speech, Stevens
warned bankers against becoming too comfortable with the status quo, noting
that the current regime under Federal Housing Finance Agency (FHFA) Director
Mel Watt will soon end, and the incoming director will have considerable power
to make changes to Fannie and Freddie.

Absent
reforms by Congress, Stevens warned that the GSEs may go back to giving volume
discounts to certain lenders for guaranteeing the mortgages. The new FHFA
director also may want to radically reduce the size of the GSE’s market share
by hiking guarantee fees (or g-fees) and tightening guidelines established by
the GSEs, which would limit access to the government-backed mortgages.

“Nothing
is locked in,” Stevens said. “If nothing is locked in, the powers of the FHFA
director are extraordinary,” he continued. “If we allow that regime change to
take place, and [the new director] views the role of government as
outstretched, I can guarantee you that those who depend on the GSEs — which is
everybody in this room — are going to be at risk.”

MBA
officers also signaled that the trade group will continue its efforts to
diversify the workforce of mortgage bankers through recruitment of more
minorities, and encourage women to enter the field and seek leadership
positions.

“Our
industry is too pale, male and stale,” said David Motley, MBA’s new chairman.

“Folks,
this is a fact: Companies that don’t embrace diversity and inclusion are going
to be left behind,” Motley added.

At the conclusion of the conference, Stevens announced he would be retiring as MBA president effective Sept. 30, 2018. Last year, he was diagnosed with cancer.

During his speech at the convention, Stevens made no mention of his plans to retire. He revealed before several hundred mortgage originators that he underwent a grueling series of treatments over many months, and his cancer is now undetectable.

“With my cancer in remission, focusing on family, friends and staying healthy is my priority,” Stevens said in a news release on Wednesday. “This was a difficult decision; it’s hard to walk away from supporting an industry that shaped my career. It’s been an honor to work with the talented staff, strong leadership and diverse membership of the MBA.”